Why India’s semiconductor push could define its AI ambitions: Inside AI’s five-layer economy

India is steadily strengthening its position in the global artificial intelligence (AI) value chain, but its role today is less about building cutting-edge AI models and more about laying the hardware foundation that will power the industry’s next phase of growth, according to a report by Crisil Intelligence.

The report describes AI as a five-layer, or “penta-stack”, ecosystem in which semiconductors occupy one of the most critical positions. While India has made significant progress in chip assembly, packaging and design, it still has some distance to cover before emerging as a full-fledged semiconductor manufacturing hub capable of supporting the global AI race.